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tv   Trending Business  Bloomberg  May 3, 2015 9:00pm-11:01pm EDT

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shery: good morning. it is monday, and this is "trending business". we are live talking about beijing. first, this is what we are watching. the cash crunch in greece. athens must make and i am a payment this week and faces the ruins of default as the bills mount. sides fare the two apart. unexplained market moves for the
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australian dollar no evidence of misconduct ahead of three central-bank decisions this year. and, claiming victory. twitter ceo says the real winner of the mayweather-pacquiao fight was his video streaming app. you can tell us what you think by following me on twitter. don't forget to include the #trending business. hong kong markets get underway in 30 minutes. singapore and taiwan have come online. here is yvonne with a look at what is happening. yvonne: a quiet day starting off the week after a holiday. seeing asian stocks falling slightly ahead of the china manufacturing data coming out in about 45 minutes. drop in volumes as well in australia and korea. more than 20% drop in volume from its 30 day average. if you take a look at the index, up about half a percent.
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we just got the current numbers for the month of march. 10.4, twos widens by point -- that is up. of astralia, up for tens percent. april inflation, the td monthly gauge rises 3/10 of a percent on the month. as well as the rga meeting on tuesday. the first time this year we have seen traders and economists united, expecting that governor glenn stevens will be having a rate cut here. 70% chance that the borrowing falls to a fresh record of 2%. we are anticipating that china the marketsg data, in china closed on friday. you may be seen fresh reaction there. will showanufacturing
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further contraction, 49.4 expected. state manufacturing came out on friday, that came out at 50, suggesting that growth in the local economy is stabilizing. we saw some reports from the china securities journal saying china's gdp for the second quarter me grow about 6.8% with inflation at around 1.4%. we will see what happens there when china may factoring data comes out in less than an hour. shery: we'll have those numbers as soon as they come out. let's move on to greece. it continues to make headlines. four days of marathon cap -- the government and creditors far apart. with deadlines looming, the specter of default rose closer. >> these talks seem to have no
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end. those negotiations will pick up later today in europe. they spent four days and nonstop negotiations, and still no agreement. we are hearing this morning that reese and its creditors are targeting a technical deal in early may. that is when the brussels group is set to meet area they have to iron out many details, including reform plans that east european officials would like to see greece embark on, issues raising from asset sales to pension reform. these are issues that require a lot of work. i'm in the negotiations, there are bright spots. we are hearing from officials within the talks as well as from the ecb, that there is positive movement. made significant steps, according to greek officials. we also had officials say there was a constructed spear -- constructive spirit in the room. that is a shift from the past three months. betweenot of concern these officials in terms of how this plays out.
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a lot of criticism from creditors that greece was not doing enough. or taking its obligation seriously. willbligations armor we leave this story. greece has big bills do. and imf bill this week, the eve -- the ecb will meet this week to meet -- to talk about terms for emergency aid. the ecb may tightening the , making greece headed towards a default. denieds prime minister that. officials do not want to see that happen. but that is what will happen if grace is unable to come to an agreement and pay the bills. million imf bill due next week. shery: we want your opinions. thoughts.t us your normal market operations, no
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evidence of misconduct. regulators, after looking at movements in the dollar after this year's three rba decisions. let's get over to paul in sydney. how do the regulators explain the aussie movements? volumee is a much lower being traded in the minutes before the reserve bank hands down the decisions. the australian securities commission found much of the trading at the time was linked to position unwinds. combined with lower liquidity, that affected the execution logic of the algorithms that were doing the trading. algorithms do much of the trading these days, not human beings anymore. but it confounded the human beings in february when the reserve bank cut the cash rate to 2.25%. economists and traders were split.
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momentsrithm arrived before the decision. the dollar fell steeply. it happened again in march and april, moments before the rba announced it was holding the cash rate, the dollar appreciated sharply. that led to gasps in the newsroom and the involvement of a regulator suspecting that insider trading was at fault. but no. regulators say is is all part of normal trading operations. if you want to see this phenomena in action again, we will get a chance tomorrow afternoon for the may meeting of the reserve bank, if the bank is going to cut, as economists expect. see the australian dollar fall a few seconds before the decision is released. inry: paul allen there sydney. let's take a look at the other stories we are watching. here's ross with a roundup. >> record inflows into the largest exchange trades that
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attract chinese companies listed in hong kong. the hang seng saw $2.6 billion flowing in in april, the largest inflow since 2010. putting i billion hong kong 3.7 billion u.s. dollars, have been added to the funds in the last four months. the china index etf and the china cap etf saw a record inflows in april, 1.2 billion was added to the china index says the rally will affect the markets and the discount will narrow between chinese companies traded in hong kong and their counterparts on the mainland. right now, they are trading at a 31% premium for stocks in hong kong. stabilize.nomy will on top of those expectations,
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investors are taken advantage of no value -- low valuations. offices were raided. it is suspected of illegal business activities and appropriating -- operating without a license. in january, china ruled that uber should differentiate between taxis and other transports. it banned uber from offering services via mobile app. officials say uber was not targeted. uber says they are cooperating with authorities. in what's being called the lord's -- the largest fight of the year, manny pacquiao and floyd mayweather, it looked like periscope has come out the winner, or that is what the ceo says. periscope is a live streaming
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service. people watching that show can use their mobile devices to capture video and streaming of liveto others -- stream it to others. it allows people to watch for free. bloomberg that they had asked periscope to take down the streams as the fight was happening, but periscope is not the only live streaming server out there. there are others. another story we are edlowing, why labor leader miliband is mocked ahead of elections. that is on still to come, it is all about the timing. numbers later this week affect the fed's view on raising rates. more on that later in the show. plus, we speak to a chief china economist ahead of the latest
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pmi. trending business will be back after this break. ♪
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shery: on to china, where the growth may beows stabilizing after the government spurred investment and ease monetary policy. our next guest leaves china may miss its growth target this year. here is the chief greater china economist as well as stephen engle. missing the 7% target. how significant is that. so much.t our focus is six .8%. if you look at china, given the size of the economy, 6%-7% growth is very good. we calculate that a 7.4% growth last year. the new gdp added to the world --nomy could be ranked as 18
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the largest economy in the world. the gross number is not important. the key is to look at whether china is rebalancing, engaging in policy reform, whether china financiala major sector. shery: you expected to slow down? >> indeed. gdp growth appears to have a rally led by static projects in china. growth will slow again. >> how do you look at manufacturing? we'll get the hsbc pmi coming out. on friday, the official pa -- pmi at 50.1. bloomberg called that a stabilization, stabilize growth. 50.1 seems like inner chef to me. >> i think when you compare this number with historical numbers,
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there is a stronger number. this is a week number. but china is still expanding in terms of manufacturing activity. what the government needs to do is to accelerate fiscal policy limitation so the pboc can cut lending rates again to lower chinese firms operating costs. >> that is what we are hearing after the mayday holiday, a lot of talk that it could happen as early as this week, a rate cut from the central bank. do you agree? >> we think this month, we may see that. we do think if you look at liquidity conditions in china, key is tunneling. whether pboc can direct the
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interest rate to the right place to a small and medium-sized enterprise. at this moment, they still face significant height real interest rate. shery: investors markets seem to think we will see additional stimulus. markets of an rallying, and that is why confidence in financial situations. confidenceex shows is strong but not so much when it comes to consumer sentiment. >> that's right. it seems like the stock market rally has not influenced chinese consumer confidence. this is perhaps the reason why we still see very weak retail sales. i think overall, this current stock market rally is not something that can be sustained. shery: you are confident in china? for the medium term,
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because the government is engaging reforms. but for the short-term, when you look at the basis for such a , theg stock market rally pboc is good enough, but it is not going to cost and -- cut interest likely sign 2009. --na's fiscal policy is >> it's not targeted. they want more targeted measures, right? >> that's right. >> that is targeted at stimulating the municipal bond market, alleviating the borrowing costs at the municipal level if they do another rate cut in addition to the tso? >> overall, by lowering market interest rates so local government borrowing costs can be lowered. we know that there are -- there is a huge program, the total amount is one trillion mmb. if a local company -- government
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china'sow cheap, then risk can be maintained. shery: should we be worried about chinese banks? we have been asking about this quite sometime. we we're seeing this provision fallnperforming loans every time you chinese bank results. >> i think we should worry about china's banking system in terms of nonperforming loans in the next few years after very rapid loan gains over than -- the last few years, banks are bound to prove -- to see nonperforming loans. you have to look at where those could occur. local governments, city, commercial banks, lend quite a lot to lgf. muchwe should not worry so about commercial banks nonperforming loan rates. >> the government is worried about lgf at a municipal level.
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china'sis moment, banking system is dominating the financial system. if banks do not lend, then the economy will tank. shery: thank you so much for your time. the stories making headlines around the world, the number of people known to have been killed in the earthquake in nepal has risen to 7250. double that number were injured. both totals are expected to rise . more aid and equipment is being flown in, although nepal's only airport has been shot two big planes. kathmandu was built to handle large-sized aircraft and aid aircraft has damaged the runway. the italian coast guard says 4000 migrants were met -- rescued in the mediterranean as more people attempted the
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crossing. no sign ofhows abating. last year, over 1000 -- 100,000 people were picked up very last month, 800 people drowned when their boat capsized off libya. the victims had been locked in the hold. the remains of the last two unknown victims of the myth -- malaysia airlines disaster have been flown out of ukraine. the flight was shot down over ukraine. all passengers and crew died. ukraine and the west blame a missile fired by pro-russia rebels, while moscow says the plane was attacked by ukrainian jets. leadershipext, a reshuffled for china's top oil companies. the details, when "trending business" returns. ♪
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shery: welcome back. you are watching "trending business". ministers in china, japan, and south korea city will support policies to stimulate regional demand being met over the weekend at the summit in i
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azerbaijan. they say policy should be carefully calibrated and boost growth. profitspac, first-half , as in under estimates earnings from treasury units dropped. the company has been trying to boost revenue despite a rise in bad debt costs and capital requirements. westpac is the first of australia's big it that -- biggest lenders. shares are down. we are expecting some big changes in china's oil and gas giants when leadership reshuffles, potentially announced this week. christine, what are we expecting? tine: china national ,etroleum corporation, senior
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and sinopec, according to people familiar with the matter, ceo, close to retirement, will be replaced. the president will step up to become chairman. the head of engineering will replace the chairman. commentst get official from any of the three companies. the most contentious of the leadership changes may be sinopec. their leader was allowed to stay beyond retirement age. he was a reformer. he got them into shale gas. he wanted to tournament we shareholding company. eventually going to cut dependence on fossil fuels and invest in clean air -- energy. discussion of what signals this is sending. he other changes, not surprising. we may hear the announcement as
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early as next week. us, what impact will it have on the oil sector? tine: part of the reason for the leadership shuffle is to give oil companies a fresh start. the industry has been rocked by corruption investigations, including into the chairman of leaderina, the disgraced was influential in oil and gas circles. this is to move the industry forward past the corruption charges. there's a lot of talk about consolidation in smu sectors. this is part of that. shery: coming up next, getting serious. why thai investors. ♪
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shery: welcome back. these are the top stories trending. four days of talks at between greece and creditors have left the two sides far apart. sources say there are deep differences on the country's fiscal outlook as well as on asset sales and neighbor -- labor and pension reforms. they must pay $220 million to the ims this week. australian securities regulators say it found no evidence of misconduct in sharp movements in the australian dollar before interest passed three
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rate announcements. investigation continues, but initial findings show what it calls normal market operations behind the movements. optimism surrounding china is fueling an unprecedented injection of money into the largest exchange traded fund, cracking -- tracking chinese companies in hong kong. the share index fund attracted $2.6 and let's turn to avon who is monitoring the market opening in shanghai. we are anticipating the pmi number coming out in 15 minutes. markets just opening in hong kong and shanghai. slight gains, up about a third of a percent. shanghai just fractionally lower estimates showing further contraction in the factory sector. about
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he china official numbers coming out friday during the may 1 holiday came out to 50.1, up from 50. we will see what reaction that is. australia, shares up about a third of a percent right now. we also just got inflation numbers from the australians, 0.3% inflation on the month. also the rba meeting tuesday as well. traders and economists united on what will happen. they will expect the governor to put the rate cuts in the face of stronger currency. 70% chance it fall to a fresh record of 2%. we are anticipating .anufacturing as we mentioned in terms of in australia,
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starting to see movers as well. the big one today so far is westpac. earnings dropping 3.4% right now. coming in at 3.7 8 billion australian dollars in line with the year earlier numbers. .he company has deteriorated back to you. shery ahn: returning to top stories, or days of marathon talks and greece and its creditors remain a part. with key deadlines looming, the specter of the default grows closer. more on the long-running drama. any closer to a deal? zeb: it appears they are. there are key deadlines, bills due, and hundreds of millions of
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dollars. this month is critical because it greece does not come through and the bailout is not renegotiated, it could default by the end of the month. we haven't eu commission spokesman saying negotiations are going on in constructive spirit, which is encouraging. beene the talks had contentious. there are contentious issues including the reform agenda, hedges, government salaries. all sorts of sticky issues that require technical work. greece and creditors expect to reach a technical agreement by the end of may when the brussels group needs. that is progress itself. they say they have made significant that's and will meet again wednesday. meet sheryset to ahn: with greece also. shery ahn:we are expecting a critical challenge to come from the ecb itself as well.
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tighten theuld screws eventually on those rules. the march accelerate towards default. this is not a joking matter. it could happen in effect to their neighbors. ironically, stocks in athens have done really well in the past few weeks on the dictations that there will be a deal. -- the expectations there will be a deal. but it is far from certain. shery ahn: we will see how they do. inc. you for that. let's see what the rat -- reaction on social media is to that story. -- reporter: whether he -- mary and he'll, one of
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the commenters on twitter saying almost 100 days in office and says he is a spinning plate. not achievinge is anything yet. next-- all of these alluding to the fact that perhaps they have not been able to come to an end yet. perhaps david cameron as well maybe in for the same after the debt collection -- the election.
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shery ahn: one of the world's most famous football clubs may be heading east. the former italian prime minister berlusconi has agreed in principle to sell part of ac milan to the businessman from thailand. what do we know so far? stephen: we know the name of the person, difficult to pronounce. he is in exclusive talks with berlusconi's and best group. they had come to an agreement in principle to buy a stake from the berlusconi family. we don't know how large a stake. report saying perhaps he had come to the table speaking 51% controlling stake for 500 million euros here those numbers are not confirmed. all we know from the berlusconi ore is they want to contain
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will remain majority owner. perhaps less than 50% that he will be seeking. this is a troubled franchise. the leaguewon since 2011. it was where the million last year and has more than twice the debt. lots of speculation for years whether the berlusconi family with cell. it looks as though they will be divesting a light -- large stake. shery ahn: what do we know about this assessment and about the finances? how solid is it, and what is talk that he could lift ac milan in asia? stephen: a private equity group , and he will team up
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private equityed firm. there are unconfirmed reports he will have keep chinese investors as well as some from the uae. an italian newspaper reports that down the road if the deal goes through, he would be possibly looking at an ipo in hong kong, shanghai, or milan. shery ahn: it could come then. stephen: it very well could. moving on. penny stocks are often considered the walking dead of the investing world. but have one valuable asset. a stock exchange listing. with commodities down in australia, increasing numbers of zombie companies are going to these listings to survive. minors transitioning into marijuana. reporter: a story to delight hippies everywhere. a company that stop doing this to start growing this.
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as australia reconsiders its stance on medical marijuana, capital mining will take over the company's asx listing and take the gold mining into the cannabis industry. >> we have the infrastructure to roll out a program in australia here and there are a lot of research companies in australia that have done well because of commodity prices for resources. those companies are available four reverse takeovers. reporter: they are not the only company to enter the stock exchange through the black door -- backdoor. last year there were 30. that is when the asx lowered the minimum stop rise from $.20 to less than five cents. drawing open the doors to his so-called zombie companies be reborn as something new. last month wireless meter reading nervous imt became online luxury marketplace.
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a failed uranium miner was reinvented as data appeared a firm. and a former nickel miner became a recruitment firm. this provided a surge in business to companies that help with paper again compliance for the listing process. lastnce the middle of late year, it became noticeable. one inquiry per day. it's interesting from southeast asia and notably singapore, hong kong, and malaysia. any other country you can imagine, saudi arabia, mongolia, america, canada. expects: capital mining to be training with a new product new name and new future by early june. paul allen, bloomberg, sydney. shery ahn: if you would like to get more on that story and others pick up this week's
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edition of bloomberg businessweek. next, little activity on china's factory for rise or fall? hsbc figures say otherwise. we will find out after this short break. ♪
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shery ahn: stories making headlines around the world. saudi arabia has rejected claim it used weapons in yemen. human rights watch has evidence that cluster bombs have been used at least twice. they have also denied reports it said ground forces into yemen after witnesses say saudi troops were seen near the airport. more than 20 people have been injured and dozens more arrested during protests by israel's --opean jewish community
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ethiopian jewish community against police brutality. police say they were attacked with rocks and responded with pepper spray. words after showing and is really ethiopian man being beaten by police. the u.s. city of baltimore has lifted a nighttime curfew following violent protests over the death of a black man in police custody. the mayor says the situation is now, enough to lift restrictions national-- withdrawing guard. charges will be brought against six officers involved in the arrest of freddie gray, including one count of second-degree murder. let's get a head start on what we are in this week. joining us from singapore is steve davis, ceo of javelin management.
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thank you for joining us. we are seeing some of the year's most popular market stock completely backfire in april. best.s. dollars lighting, lighting, oils rebounding, what -- fourxpecting or may may? guest: we might see it more of the same. once again it looks as though it will be a repeat this year. shery ahn: i will have to interrupt you, we just got the hsbc pmi figures that the final 48.9.g it that is below the preliminary estimate, 49.2. and below estimates as well coming in at what he 8.9. although 50, marking a contraction. any reaction to this number?
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we've seen a little bit of volatility in these numbers over the last couple of months anyway. it does prove the point that the chinese government, which seems to be embracing easi over the , it looks liken that policy will continue. shery ahn: the official pmi come in at the .1. we framed it as the chinese economy slowly stabilizing. but with hsbc figures coming in below 50, how worried should we be? guest: i think it is too early to read too much into one data series. there is a little bit of a discrepancy between the official number and the hsbc figure from month-to-month. it really just points to the fact that the gradual pace of
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easin from the chinese government will continue because economic rates are sluggish. shery ahn: investors are still betting that shanghai hong kong markets will continue. will you put your money there? is no roomink there for growth, but obviously we have seen huge rises over the last nine months. most particularly since march of last year. i think there is still room for growth, but that is a lot of expectation built in. depends on accommodative policies coming through from the chinese e thinkent which w will continue. but is -- it is month-to-month case. did say youe -- you
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are temporarily underweight equities in the u.s.. does that still hold? again, our view on the u.s. market is still pretty positive for the latter part of this year. but into the next six months, and continued fever speculation about when and the size of any interest rate increases will come through, that is likely to put a cap on the market on a short-term basis. later we are expecting earnings to pick up. we anticipate a strong final quarter. up until that point, still fairly volatile and we still feel there are better opportunities elsewhere short-term. -- elsewhere short-term. shery ahn: would you put your money on japan? we just saw inflation in jebel little higher with people saying maybe the boj will delay more easy? japan remainsw on
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pretty positive, particularly if you had out the potential currency risk which we think is pretty high. ahead, theking underlying picture for the japanese market is still pretty positive. we are looking at a fairly significant rate of shared buybacks, not just in japan but elsewhere, like in the united states. japan in particular. inthe same time, earnings japan is some of the strongest in the world. generally pretty positive, still have to wait on the japanese market. shery ahn: household spending still not picking up, declining. why is consumer spending not picking up? guest: i think one of the things we have seen in japan is the consumer has been slow to embrace the euphoria that is
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currently filtering through stock market. japan is not unique in that respect. nonetheless it is taking a bit of time to feed through and to consumers. understandably they remain relatively constant. but from the corporate perspective, corporate earnings are beginning to accelerate and we anticipate that will result in probably a higher degree of settlements over the next 12 months or so. that will definitely boost consumer sentiment on a medium-term basis. shery ahn: briefly, to australia. the rba decision coming out tomorrow. are you expecting rba to cut? say australiato has not a market we tend to no caps on a lot. certainly in terms of -- tend to focus on a lot. certainly in terms of the
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australian central banks, they will probably continue to maintain policy as it has done over the past couple of months. shery ahn: thank you for your time. coming up next, hitting movie screams with a vengeance or maybe not? the latest in a marble make the franchise failed to land -- marble franchise they'll to land a knockout blow in the box office. ♪
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shery ahn: welcome back. let's turn to what is trending on social media. reporter: i'm going to start with what has been advertised as the fight of the century. manny pacquiao in floyd mayweather. some people may not agree it was a fight of the century. people saying they waited five years, underwhelmed.
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a lot of dancing around. some people were -- for the amount of money that was that it -- i think people were expecting to see a big fight. another one thinking that the fans did not get their money's worth. fighter, said great performance. it might have looked easy for mayweather, but people have in commenting that this i not make people jump out of their seats. there could have been more to it. but in the end mayweather one. zeb: i would jump out of my feet and paid so that much money to see it. another big number.
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sequel, "age res of ultron." second best box office debut ever. 180 $7.7 million in u.s. and canadian ticket sales in its opening weekend. interesting side note. first up, a lot of talk as to whether or not the first one was good and this was better or vice versa. one viewer said they loved it. others say it was disappointing. i guess that is to be expected. then the issue that it came out earlier in korea. reporter: and also in hong kong. that it camewrote a day or two later. why not throw in mark ruffalo, the star, thanks the fans.
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reporter: back to you. shery ahn: looking forward to that movie. coming up on "trending business," more signs of a slowdown. sector isnufacturing still contracting. how it is affecting markets. ♪
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shery ahn: good morning. it is monday and this is "trending business." first here is what we are watching. shaking it up. big oil faces big change in china has the government overhauls the bloated state sector. they they'll to -- thou to crack down. is notors say there
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evidence of misconduct surrounding the three rba rate decisions on the aussie dollar this year. east, silvio berlusconi me sell a chunk of ac milan to it a billionaire from tylan. -- from thailand. let us know what you think of the story i following me on twitter. don't forget to include #trending business. the leader of china's manufacturing gauge. reporter: further weakening in the manufacturing sector are. in particular in private manufacturing. atc pmi for april coming in only 8.9. the survey was for 49.4. march was 49.2. below the consensus and the previous month. below 50 indicates contraction. further weakening of new orders
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as well. new orders in the survey declining the most in a year. this one's a little bit counter to the official pmi we got friday showing a stabilization at 50.1. the same as the previous month. this weakening conditions at the spurny floor perhaps will more calls from central bank authorities. earlier they say authorities will need to continue to roll measures in the coming months. on the hsbc statement, new orders declining at the strongest rate in the year while production levels stagnated. the while actively meet domestic demand was the main driver. export orders seem to be picking up but weak domestic demand drivers -- drives further contraction. shery ahn: let's see how the markets are adjusting those
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numbers. quite a slump in the pmi number. yvonne: that's right. we saw the chinese stocks were falling ahead of the data and we saw significant drop as soon as the results came in 15 minutes ago. the shanghai composite right now down about two thirds of a percent. big movers of the day here, but shanghai dropping the most today. the number coming in at 48.9. the australian dollar as well, is extending its losses for the fourth day. this is on speculation rba will cut interest rates to a record 2%. it is about 78 u.s. cents right now. headed for its longest losing streak in a month.
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pretty much united we will possibly see a rate cut from governor glenn stevens tomorrow. let's talk about the movers of the day. australia, let's talk about that later. let's talk about china first. motors up about 10%. the chinese partner of volkswagen, some recalls. vehicles here00 it talking about faulty model.ion on the 408 according to the general administration quality supervision. but they did announce they want to introduce the tablet -- a new tablet. sincec falling the most 2011 as profits are missing estimates. csr, biggestr and
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movers of the day. we did see that overall the northbound southbound link most traded in the last couple of days. back to you. shery ahn: thank you. let's stay on china. it's oil and gas giant made the leadership being reshuffled as the government continues to overhaul the bloated state sector. christine hah, what are we expecting now? reporter: according to people familiar with the matter, we will see the chairman of the three biggest oil and gas companies replaced. no big surprises. he was nearing retirement and any case. the other president will step up to become chairman. this is the one that will get
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attention. he had of the chinese academy of engineering is reportedly set to replace current sinopec chairman. part of that was seen to be because he was a bit of a reformer to himself. eventually he was going to cut sinopec dependence on fossil fuels and invest in clean energy. it will be interesting to see what happens once changes are official. has been a lot of inefficiency and corruption in the energy sector. part of the reason is to allow the industry to move forward, push allegations to top officials, and go into the future. shery ahn: thank you. we will have a more detailed look at that story later in the show. we do want your opinion. please tweet your thoughts.
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include the #trending business. let's take a look at other stories. here is profitable roundup. the largest exchange traded funds. the index fund sought 2.6 billion dollars since april, the largest since 2010. about 29 billion hong kong dollars have been added to the fund in the last four months. also saw aina index record in full -- inflow in april. ubs says the rally will spread to the h shares market. right now, shares in china and
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still trading at 31% premium to stocks in hong kong. easinations that monetary g will continue. investors have taken advantage of low valuations. we are also looking at uber. raided.zhou were they were suspected of illegal activities and operating without a license. it was ruled that they should differentiate themselves from public taxis. say over was not specifically targeted. is cooperating with authorities. in february they had said they were planning to hire hundreds to help it compete in china. is launching a six
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kilowatt per hour home storage. this is a challenge to tesla, which has seven and 10 kilowatt models. they are trying to make greener power accessible to homes. it will be about the size of a suitcase and suitable for a family home with some their collars -- solar powers using lithium ion cells. it will make it more affordable by offering finance plans and extended warranties. if you want comparisons, they will be delivered later this year at prices starting from $3000. to you. shery ahn: coming up later, getting a piece of the action. haiwill look at why a t investor may be fighting silvio's stake in ac milan.
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a cash crunch in greece. more on that for you coming up next. ♪
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shery ahn: love them back. the specter of default is back in greece with key payment deadlines coming up. the government must hand more than $220 million to the imf this week. a professor of economics at enc is here. thank you for joining us. $200 million coming this week. more than 700 million next week. are you optimistic about these talks? guest: it is very hard to be optimistic. i think what the greek government wants and the
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european partners want hard to. the only thing they can agree on is both sides are scared of a crisis that they are willing to do a compromise which would just keep the can further down the road. not a real compromise but some solution for short-term. shery ahn: back in january you were saying that this crisis this time is different from 2011 and 2012. are we eventually headed for an exit? likelyit is a very possibility they will leave the euro. i'd think it is possible they would love to find an agreement. the european partners are not so scared anymore. i feel like they could contain the risk of it to other countries. they feel that maybe it will be that are without greece. there is a real possibility
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greece exit the euro area. shery ahn: the imf has been known for waiting for the money. how detrimental went missing payments? guest: very detrimental. that is the first payment greece will make. i think they want to be on good terms with the imf. if they ever default it will be some of the money they 02 other european -- they of to other european partners. what kind of scenarios are you working out right now? guest: it is very difficult to know what is going on in these negotiations. there is a lot of tension but both sides have tension in their favor. they tried to talk about the possibility of a crisis and the need for greece to commit to very serious reforms. what we hear is not exactly what is going on behind doors. it is hard to have a prediction. but if these negotiations go nowhere, and personalities
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involved have a lot of emotions and don't have an agreement, and greece defaults, the question is whether that will lead to exit or not. that will lead to another negotiation. tsipras is considering a possible referendum. do you think this makes sense? guest: i think it makes sense from a political point of view. he will not get an agreement without a compromise. he ranwhat he said when for election. he realizes the only way to wait make this work is to go back and say this is the only possibility. only problem is there might not be enough time for a referendum. but from a political point of view it makes sense. a strong: we see supply of economic data out of the eurozone lately. there has been some speculation that given the strong economic data, qe could end up sooner than expected? guest: i don't think there is
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enough evidence yet to say that. i think is going to continue. the data is what -- better than we got a year ago but it is still very weak. i expect it to go all the way to where the acp has planned. i doubt they will pull the plug. shery ahn: we have seen this bond selloff recently. investors being concerned that yields are unsustainably low. what is your take on that? guest: the yields probably went to a level that were unreasonable. uncertain live on times. we have never had rates so low across the world. investors are testing some of these low interest rates and want some of what we saw over the last weeks or months in europe, and now with rates coming back to normal territory, i don't expect them to go very far. very closeem to go
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to zero for a significant amount of time. shery ahn: you do not see this recent spike as a game changer at all? no, i think just standard volatility is happening. it happened in the u.s. and now it is happening in europe. we understand how life with interest rates are looking like and people are testing different levels. thank you so much for joining us today. guest: thank you. shery ahn: stories making headlines around the world. more than 20 people have been injured and doesn't more arrested in protests by israel's ethiopian jewish community against police brutality. police in tel aviv say they were attacked when -- with rocks and responded with last grenades. protests was called after video emerged showing an ethiopian israeli man being beaten by police.
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the u.s. city of baltimore has lifted a nighttime curfew imposed last week following violent protests over the death of a black man in police custody. situation iss the now, enough to lift restrictions and begin withdrawing national guard. on friday prosecutors say charges will be brought against six officers involved in the arrest of freddie gray including one count of second-degree murder. claimsrabia has rejected that it used banned weapons in yemen. human rights watch says it has evidence that cluster bombs that been used at least twice in their campaign against shiite rebels. they have also denied reports that they sent ground forces into yemen after witnesses say saudi troops were seen near the airport. next, getting boxed around. why the avengers took a weekend meeting at the box office. when "trending business,"
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returns. ♪
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shery ahn: welcome back. you are watching "trending business." there is a brisk business on the streets of hong kong for the new apple watch.
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gadget come of the banged with enormous demand is driving a burgeoning secondary market. stephen engle take a look. stephen: never mind a huge markup, china is stocking up on apple watches to give us gets back home. >> the apple watches are more expensive in china. i couldn't even find any. >> i did not expect this craziness. i do not think it would be such a hot item. i think people are going after the apple watch because there is limited supply. stephen: a sense of what the market prices here. the most expensive one he has sold is worth 10,000 hong kong dollars. 1300 u.s. dollars. the list price is $700 u.s. dollarwant to pay almost -- open w can be an early adopter here. >> it is new, that is why i want to try it. but i will have to pay $200 more. $500-$1300 isen
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too rich, you can always downscale. they are not really knockoffs, more of phone on your wrist here -- it has a sim card. 780 hong kong dollars. most companies -- customers were focused on the apple watch. this sounds a lot like scalping, but it is legal here. that is why a number of different vendors are lined up along the sidewalks. they are not selling the watches, they are actually writing it. then they sell for a premium on the mainland. 5000 hong kong dollars, little less than 700 u.s. dollars here it they fell to a wholesaler for a premium. many apple watch buyers to buy
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online are selling them back on the secondary market for up to a 70% profit. >> normally i by about 10 per day for resale. i can sell roughly 15 or 16 per day. i'm not worried about over stocking. we can always sell them all in china where the demand is still high and will continue to be high. stephen: she says she is off to find more. she has already bought six. >> as long as i can find them, money is not a problem. stephen: stephen engle, bloomberg, hong kong. shery ahn: a look at what is trending on social media. reporter: i will be taking a look at what was dubbed in the fight of the century. the fight between manny pacquiao and floyd mayweather. maintaining his title as unbeaten in this match.
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many people have commented it was not what they were asked acting. the numbers -- what they were expecting. the number in terms of money that they were commanding for this. zeb: $185 million. reporter: and people paid houses for ringside seats. they expected a lot more. --also heard from a mere con a former sparring partner of manny pacquiao from great britain. this is a selfie he took on the ringside. he commented, well done @floyd mayweather. next keller men was the hbo interviewer. he has been criticized for what some have perceived as being slightly negative.
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this is what he answered to manny pacquiao fans. commenting on his interviewing techniques. zeb: i might be a bit disappointed as well if i spent thousands of dollars. we are talking of hundreds of millions of dollars, 187 million to be exact. a box office blockbuster weekend sequel." avengers" that is the second best. the original did better. if is a powerhouse franchise for disney. it has done very well. i just came back from watching the movie, i love it says one fan. but some like the original. those who got a head start in korea. the movie came out earlier in english with korean subtitles, which is why in other markets, bootlegged copies were showing
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up. thatwas one of the issues did not have an impact in this early on health, but at what some of the stars are saying. mark ruffalo says thank you for seeing the movie. we should also note that the fight upstaged this a little bit. in the u.s.. this movie has a huge number of fans. people see it even if they don't think it is a great movie. shery ahn: coming up next, the challenges facing the oil industry in china at the president continues to target bloated state owned industries. w when yvonne: "trending business," returns. ♪
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shery ahn: welcome back. these are the top stories. the latest data from china shows further weakening on the factory floor. 48.9 pmi reading was below estimates. and significantly lower than the official figures of 50.1 on friday. china's top oil companies are in for leadership shakeup as the president moves to overhaul the sector. the new chairman at cnbc,
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sinopec, and another big company will replace ceos and navigate through the official crackdowns on crutches. -- four daysween of negotiations between greece and creditors continue. athens must pay more than $220 million to the imf this week. et's get a first let's get a check of the markets. yvonne: thank you. manufacturing data came through just about an hour or so ago, less than an hour or so can. composites were fractionally down but dropping as much as 1 1/2% right after the data coming. seeing retreats right now. but final hsbc number coming in at 48.9. that was amiss. economists were expecting a
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49.4. so contracting faster than estimated and chinese securities journal also reporting they expect second quarter g.d.p. growth to be about 6.8%. so below that 7% target there. and this is hsbc record in slow growth coming into hong kong tracking chinese company, $2.6 billion for the last month. let's look at how the big movers of the day. we did see australian dollar also falling today as well. extending those four-day losses. see right now evergrant real estate, up 8.7% right now. this as we saw that the most sold stock actually, via hong kong shanghai connect. top nell set there $99.7 million we are seeing arise today. 19,000 plus recall of peugeot
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models there due to faulty condition. .6% now for china c.n.r. down about 5.5%. t.s.r. falling as well. westpac, we have been talking about that all morning. earnings, cash profit missing estimates. falls the most in 2011. crash profit coming in $78.8 billion. that was amiss. expecting 3.85 billion and worley parsons, one of the top movers in the australian a.s.x. 200, comedy prices continue to weaken. company said the workload deare tier rated since february, which impacted margins and they expect the earnings for second half to be cut in half from what we saw in the first half. so not looking too good for worley parsons there.
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back to you. shf yvonne, thank you very much. china's oil and gas giants may see the leadership being reshuffled as early as this week as they ton overhaul the bloated sectors. let's priss christina ha. what are we expecting? christina: we're expecting to see the changes in the chairman of the big three so according to people familiar with the big matter, the chairman will be replaced. no big surprise because he was nearing retirement and would have left soon. and the chairman who heads c-nook will be replaced by the deputy head of the chinese academy of engineering. he been allowed to stay on for an unspecified period after retirement but announced he was stepping down last week. coincidentally the number two was being implicated and pushed.
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now, no official comments from any of the three yet but analysts do not expect a big change from the company now. likely to get statements one these changes are officially announced, some say as early as this week. shery: christina, what does all of this mean for the energy sector in china going forward? christina: well, analysts say part of the reason for the leadership shuffle is to give oil companies a fresh start. the industry, of course, has been rocked by corruption investigations including into a former chairman of petro china. this man was famously influential in the goil and gas circles and nicknamed the properly nicknamed petroleum gang. they struggled with oil prices as well. this is to help them to move forward and wash slate clean. there's been a talk about consolidation as well. we heard talk beijing plans to cut the number of estate-owned 40 to 112. from
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we are told they can be handed over to state asset management firms to run. according to barclays, stay-owned economies account for a third of the economy and more than a quarter loss making. while analysts say it's unlikely to see margeer between any of the top three just because they're so big. petro china itself employs over half a million people but we will definitely be seeing some sort of moon to streamline the sectors in the months and years ahead and we will see if beijing starts their profits with oil and gas companies. certainly making biggest changes ere at the moment. shery: christine hah, thank you very much in beijing. normal markets operation and no evidence of misconduct. so says australian securities regulator after looking at subtle movements in the aussie dollar ahead of this year's three r.b.a. rate decisions. let's get over to paul allen in sydney. paul, how does the regulator then explain these rather
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strange moves with the aussie dollars? paul: yes, shery, it was all very curious. a.s.x. says there's a rational explanation and liquidity before the reserve bank of australia announces its cash rate decisions is very low. there are a lot of positions being unwound at the time and this causes big variations in the aussie dollar we were seeing. just a background on all of this, back in february when we first saw it, when reserve bank cut the cash rate to record low 2.25%. and a few seconds before that was announced the aussie dollar plunged suggesting somebody somewhere knew something. then it happened again march and april when the r.b.a. held rates just a few seconds before those decisions were announced, aussie dollar climbed. again predicting correctly what the reserve bank was going to do. now, each time that happened, gaffs went up around the office
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in bloomberg. journalists naturally predisposed to think the worst when these things happen. but the regulator said it's all perfectly normal and there's nothing to worry about, shery. shery: still quite curious what will happen tomorrow because r.b.a. meets again to set the cash rate. what's the market expecting this time? paul p paul klein lot more unanimity this time around. 70% swaps traders and 25 of the 29 economists surveyed by bloomberg all think the cash rate will be cut again down to a fresh record low of 2%. the reasons for that is nothing has really changed. the economy is still in translation. the minor infrastructure boom is still over. nonmining investment still week and all of those factors that prompted the r.b.a. to embark on latest rounds are still present. the feeling is it would be very weird if they cut once and didn't do it again. there's a second cut in the works as the general feeling among analysts and we're going to see it tomorrow.
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if you really want to know what's happening, we will see the phenomenon in action again i'm sure. keep an eye on the aussie dollar a few seconds before 2:30 local time. i think we will have a good handle on what the r.b.a. is thinking, shery. shery: quite interesting, thank you, paul. paul allen there in sydney. let's check in on some of the other stories we are following. twitter is video streaming out paris copes caught up in a storm after people used it to watch the fight between manny pacquaio and floyd mayweather. c.e.o. dick ca stolia described per acope as the winner of saturday's event. hbo and showtime told twitter and rivals to take down the live streams during the fight. hbo made a similar request last month over live streaming of "the game of thrones" season premiere. warren buffett has spoken about the type of candidate who should replace him as berkshire hathaway c.e.o., saying they need a significant array of skills. the 84-year-old said his
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successor needs to be more than just a stock ticker. but he would accept someone with operational investing experience. buffett was speaking at berkshire's annual meeting in omaha, nebraska. chinese billionaire is still shopping his investments. planning to move with bermuda-based insurer ironshore. fosun will play $2 billion to buy the shares it does yet own. he recently bot shares in club made and cirque du soleil. one of the world's most fable football clubs maying heading east. the sources say the former italian prime minister silvio berlusconi has agreed in principle to sell parts of a.c. milan to a thai businessman. what do we know so far? we know the person is bee touche touche, a private equity
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group involved in real estate and production and also sports businesses in thrinde. -- in thailand. taechaubol reached a deal in principle to buy a steak in a.c. milan from sill bers sconey. we don't know the size of the stake. what we know from reports ut of italy and u.k., bee had gone to him with a pitch, if you will, to buy upwards of 51%, so controlling stake, for a reported price tag of about $500 million euros. we have gotten a statement since on saturday from the burse coney group saying we're going to maintain control, so at least 51% will stay in their hands, according to the statement. but as far as we know, we don't know the exact percentage. this is a troubled club. it has not won the top league in italy since 2011.
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it's been losing money. lost 91 million euros last year. debt loads more than doubled that, nearly tripled that. and this is an sending of an era. silvio berlusconi has owned this club 29 years, almost 30 years and and now another asian investor is coming in to buy a very prominent, storied european football club. shery: growing power of asia and asian investors. but what do we know about bee himself? we know he has diverse portfolio businesses but how solid is his finance? also, we are hearing they may list here in asia. >> yes, his name came up a few months ago and started, scrutiny started, can this gentleman afford it and sustain the ownership group of this -- of this football club? we know he will be partnering up with another london-based private equity group doyen sports. other media reported significant chinese investor as well as others from the united arab
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emirates, again not confirmed. and you're right about the i.p.o., another media report perhaps down the road if this goes through he would push for potential listing in hong kong, sjeng high two very markets and possibility of milan. shery: good time to list. thanks, steve. up next -- over the weekend, new ways of powering homes and businesses across the world but the competition is already heating up. details up next.
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shery: the stories making headlines around the world. the number of people known to have been killed in the earthquake in nepal has risen to 7,250. at least double that number were injured and both totals are expected to rise as remote
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communities are reached. more aid and equipment is being flown in, although nepal's only international airport has been shut to big planes. katmandu was built to handle medium-sized aircraft and heavy freighters carrying aid has damaged the runway. the italian coast guard said nearly 4,000 migrants were rescued in the mediterranean sunday as good weather and calm seas persuaded more people to attempt the crossing. these are live pictures from sicily. last year 170,000 people were picked up. 280% increase on 2013. last month 800 people drowned when their bot capsized off libya. the victims had been locked in the hole. the remains of the last two unknown victims of the malaysia airlines disaster in ukraine have been flown out. mh-17 was shot down last july over separatist parts of eastern ukraine. all 298 passengers and crew on board died. ukraine and the west blame a
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surface-to-air missile fired by pro-russia rebels while moscow said the plane was attacked by ukrainian air force jet. competition is heating up for batteries that can power the family home. australia's biggest energy producer a.g.l. said it's preparing to debut a home storage battery, clear challenge to tesla, which just announced its own models. we look at the emerging markets for new energy storage. reporter: tesla is making a bet that an enormous $5 billion gigia factory will solve a problem that the power industry so far failed at to create a cost-effective battery to store electricity on a massive scale. it starts with small backup systems for people with rooftops solar. great for those who want to live entirely off the grid. but that's a tiny market. for households still connected to the grid, the batteries are
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not yet cheap enough to make economic sense. there's a much bigger market tessia l.a. is going after, businesses and utilities. here's why. in the next five years solar power will make up more than 50% of california's electricity during the sunniest part of the day and then provide no power at night. batteries could help even out the power supply by storing electricity from off-peak hours to be used during peak demand hours. shifting the peak would cut utility bills for businesses like walmart, which are already testing the new systems. some utilities are also eager to build battery storage. power companies must maintain so-called peaker plains, expensive facilities that sit idle for most of the year but are needed when electricity demand is greatest. batteries could replace some peaker plants while strengthening the grid. the cost of batteries is falling
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as fast as the cost of solar panels, very fast. the tiny, new energy storage industry is about to break open and whether it's from tesla or one of its many emerging competitors, some electricity fra your outlet may soon be coming from a battery. shery: so will australia's a.g.l. be able to compete with tesla in this emerging home battery market? joining us from sydney is bloomberg new energy finance analyst hugh bromley. hugh, how does a.g.l.'s announcement compare? hugh: well, what a.g.l. announced this morning is a 6 kilowatt hour residential storage unit so it's slight sli smaller than tesla's units announced last week but should sue plant a third of the home's energy requirements. a.g.l. said this would be coupled with a solar system 3 to 4 1/2 kilowatts and that would
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suggest it could work with about half of the solar systems installed currently in australia and the majority of systems installed going forward. shery: so these 6 kilowatt batteries basically in direct competition with tesla then? hugh: yes. we know tesla products will be coming to australia in the second half of this year also. and in terms of pricing, what we expect is that tesla unit will be slightly sharper. we know that there are 7 kilowatt hour units has been put to the market at around $3,000 u.s. dollars for the units. but by the time that landed in australia and retailed, what we expect is a.g.l. cannot compete but where this market is going is towards finance solar market and that mean a.g.l.'s 3.3 million customers will be able to access solar and now energy storage for zero cost up front and be paying a monthly charge that was less than their
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previous utility bill. shery: do we know exactly how much the a.g.l. system will cost? >> no, we don't. so when we look at the a.g.l. announcement that's been made, there's no pricing details and there's also no known supplier at this stage. we expect that detail to come in coming months. but importantly if for many customers this will not be about the up-front cost but lifetime cost, monthly bill that you receive from a.g.l. and rather than being energy supply from their large coal plants, it will now be from solar and roof and steerge in your garage. shery: a.g.l. is the first australian energy retailer to be joining this market. why are they doing this now? hugh: well, it certainly is part of a broader shift we are seeing throughout the australian utilities. they remain competitive and the origins are also moving to this space. that includes solar p.v. and
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storage. it would include smart appliances in the home. and we expect all of the utilities that collectively have 74% market share to release these finance products and new distributed solutions over the coming year. shery: what does this tell us about the direction of a.g.l.'s business overall? we are also hearing they will be closing down their coal plants in the next, what, 35 years? hugh: that's right. so i think already we are noticing distributed energy, solar on people's roof tops, is affecting profitability of generators and energy demand in australia. what we are seeing, in particular at a.g.l., is bringing consumer units offering solar and storage closer into the core business. and giving them equal weight in terms of the strategy going forward for the company. in terps of profitabilities, it's also about maintaining your relationship with the customer. 3.3 million customers, of which a large proportion shift in and
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out every year. they are trying to maintain that relationship going forward. shery: hugh, thanks a lot. hugh bromley there in sydney. coming up next -- it seems the "avengers" may not be as strong as they seem to be. we will tell you their newest enemy when "trending business" returns.
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shery: welcome back. let's go straight to roz with a reminder of what's trending today. >> we are looking at greece after negotiations with international creditors. fall apart on key issues and, of course, many deadlines coming up his month. and it could be to avert defaults. and some comments on twitter saying -- agree with fischer -- greece's does not understand the
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difference between campaigning and governing. also looking at the fight of the decade between floyd mayweather and manny pacquaio. some people think it was underwhelming. mike tyson saying, we waited five years for that, underwhelmed. and "the age of ultron" took in $84.5 million on day one. second biggest to be in north america coming second only to the original movie. mark ruffalo, who stars as the hulk saying thank you for going to see the movie. fans of "avengers," it was a big weekend. shery: looking forward to watching that movie. thank you, ros. do stay tuned for "asia edge" where angie will recap the big
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stories of the day. mark sinker, the asia head and you are watching bloomberg television. "asia edge" is next.
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zp you're joining us in the middle of the asian trade dage. live look outside our offices here in the central business district. this is hong kong and this is "asia edge." top stories this hour -- disappointing data. hsbc further further weakness on china's factory floors last month. payment plans, specter of default looming in greece as vital cash is running out. and if mining to marijuana, the
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length some zombie companyless go to just to stay alive. also on the show today, calls for a rematch. pacquaio fans demand another shot at may warge after the heartbreaking loss in vegas. we will check the mood in manila today. good morning, i'm keeping an eye on the markets this morning. asian stocks reversing gains we w after the chinese p.m.i. coming out as angie mentioned. shanghai swinging from gains and losses. very volatile morning here. quick stirs, 1 1/2% about an hour ago and now back in positive territory, up about 1/5, hang seng fractionally up as well. here are some of the movers here today. world holdings -- wharf holdings and new world division doing well for themselves. talkinga


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